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REVEALED: 14 Ways to Spot a Trading ScamIf you’re new to trading, listen up. There are serpent companies and individuals out there, with only one goal. To make profits and money for themselves and NO one else. They do this by exploiting the newbie trader’s optimism, greed and fear by tricking them into what I call “Easy-Money-Traps”. As a savvy trader, you need to know how to spot and avoid these scams, before you fall victim to one of them. I’m going to kick you off with 15 of the most common trading scams you may find nowadays. SCAM #1: Flaunting money and posing in flashy cars WARNING: When you see an advert with a fake ‘guru’ posing in a Lamborghini holding stacks of cash, this manipulates people into thinking they’re rich. REALITY: Most times the cash notes are fake and worthless, which is prop money that is usually used in movies. It’s also been proven that 90% of these companies or individuals usually rent the car, borrow it from their rich friend or they take selfies in front of a stranger’s car. WHAT TO DO: Don’t believe everything you see online. Scam #2: They chase after your contact number WARNING: When a fake “guru” begs for your contact number and persuades you to buy a trading course or ticket to their seminar. The more aggressive they are trying to get your money, means that their primary income is mostly likely from what they’re trying to sell rather than the money they make when trading. REALITY: A true trader with a product or service to offer, will not pester you, sound desperate and bully you with tons of marketing and promises. Their main goals are to offer you value, help and develop a relationship over time. WHAT TO DO: Never share your contact number just to “Learn More”, “Book A Free Consultation” or “Check Out” information on what the product is about. You will have marketers call you on a weekly basis trying to suck you into buying their products. Scam #3: There is NO background information WARNING: When a scam artist has little to no background or legal information. Whether it’s a trader, broker, money manager or an educator – Never work with anyone who doesn’t have the following: • A website • A proven track record (at least 5 years) • Valuable content • An “About Us” page (To learn more about them) • Contact information • Customer reviews and testimonials (Ask people!) • A company registration number • Tax registration details• Financial regulation • A website that isn’t secured (When it starts with HTTP and not HTTPS) REALITY: Most times these non-regulated individuals will try their luck to get you to deposit money into their account and then will disappear. WHAT TO DO: Always do a full check-up on the person or company through Google, Facebook, websites and reviews and take notes with the bullet points above to see if the person or company is licensed, legit and regulated by independent organisations. Scam #4: You can’t withdraw your money WARNING: Your broker or money maker, doesn’t allow you or limits your ability to withdraw funds or profits. Whenever there are delays to withdraw your money, chances are you’re dealing with illegitimate trading companies. It should never take more than a few days for your money to be returned… WHAT TO DO: Don’t invest a single cent more into the company, until you have received your funds. Use your rights and speak to a lawyer about your options, in order to find a way to get your money back. NOTE: This does not apply to fixed-term securities such as, hedge funds, bonds, retirement funds with periodic redemption rights and other constraints. Scam #5: Failure to prove their BOGUS trading results WARNING: When you see someone bragging about their winning trades or money they made for the day and how they can help you – but not willing to prove their results. Watch out with Facebook and Instagram posts on traders posting fake trading results on Telegram, MyFxBook, WhatsApp and other groups. REALITY: If they are not willing to prove their results, chances are they have been Photoshopped and are only trading with a demo account. Also you’ll see them posting their gains and winnings only and never their losses. This is a big red-flag for me which screams out – SCAM! WHAT TO DO: Avoid any person who is not willing to share their broker statements or trading results which have been verified by a reputable and licensed firm. Scam #6: When they urge you to buy immediately WARNING: When someone tries one of their high-pressure sales techniques to get you to invest or buy a product or service on the spot. If ever you get one of those sleazy salesperson’s try to intimidate you, make you feel stupid for not making a decision – warnings bells should ring. Many con artists, will pressure you with limited time offers or tell you to buy on the phone or you’ll lose the deal. REALITY: A legit and ethical company will never create such urgency. They will in fact, want you to do your own research, consider your options and take your time to see if their product or service offered will benefit you or not. They will NEVER force you to buy anything on the spot. WHAT TO DO: Do your own research before you make a decision, and make sure you leave those high-pressure salesmen charlatans. Scam #7: You hear bad investment advice or too-good-to-be-true deals WARNING: When you hear bogus advice or too-good-to-be-true statements from an individual or company that is contrary to anything you’ve ever been told. As soon as you hear any of these messages, they are most likely scams: • “You can put your life savings into our brokerage firm.” • “Follow our +80% win rate trading system.” • “Do you want GUARANTEED returns?” • “Take out a loan and invest with us.” • “You’ll bank over 10% a month.” • “We don’t use stop losses.” • “100% accurate signals.” • “Get rich quickly.” • “Easy money.” WHAT TO DO: Don’t run away just yet. Do the full check up on the company and with their track record and then decide for yourself. Most times it’s just the marketing agency, rather than the actual trader, who’s trying to hype up the copy through their copywriting, Click Funnels, Value Ladders etc… Scam #8: They ask for your personal information WARNING: When someone asks you for unnecessary personal information to make a transaction. There are salesperson’s out there that will ask you for a bunch of unnecessary personal information including: • Bank card details • Facebook account details • Phone number • Income per month • Trading account password • Home address REALITY: If you’re looking to invest in a trading product or service or open an account with an institution, then no trusted and legit company will ever ask for the above details. WHAT TO DO: Never give any details to an individual or company that you don’t trust. You can also ask for their Terms & Conditions and Privacy Policy statements, to read each detail of their security and privacy matters. Scam #9: You get a call from a stranger WARNING: You may get an unexpected and unsolicited local or international phone call “cold call”, email, letter or personal visit from a stranger offering you a deal. REALITY: These are most times marketers or customer services trying to sell you something, in order to make a sale. WHAT TO DO: Kindly tell them to remove your number off their data-base and that you will do your own research and will call them back if you are interested in what they have to offer. Scam #9: Watch out for bad wording WARNING: When the company or individual is packed with bad wording. Bad wording includes: • Misspellings • Incorrect dates (Look at the footer of a website where it says ©) • Badly written content • Unprofessional content i.e. emoticons, !!!, ??? and swearing • Typos everywhere • URL website has spelling mistakes e.g. (Foerxtrading.com) WHAT TO DO: This should be your judgement… NOTE: I personally am sceptical whenever I see any of the above, even though I may make a typo or grammar mistake with my own content every now and then. Scam #10: The never-ending Facebook scams WARNING: When you see posts that offer you free signals, tools, get rich quick messages or advertising ploys that direct you to deposit money. You’ll see countless scams on a daily basis in Facebook groups and pages that will direct you away from them by sending messages such as: • “Inbox me” • “Ask how” • “Join our Telegram” • “100% accurate signals” • “Reply add” • “Do you know you can make XXX amount of money” • “Click this link” • “Ask for more info” • “Daily free signals” • “Daily 200 – 500 pips” • “Guaranteed results” • “No scam” WHAT TO DO: Do your thorough research and follow the above #3 step before making your decision. EXTRA TRADING SCAMS TO WATCH OUT FOR: #11: Trading software, robot or EA that guarantees a +70% win rate system. #12: Fake Facebook profile name, picture with dodgy friends. #13: Any product or service that promises “Zero-Risk”. #14: Any notion that promises you riches quickly and tells you to trust them or take their word for it. If you enjoyed this trading lesson of the day let me know in the comments and follow me for more daily tips. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1 Rule to STOP a portfolio CRASH I guess my number one rule to prevent a portfolio going bust is my 20% Rule… The rule is simple. If my portfolio ever drops below 20%, due to a losing streak, I halt trading… Notice the word halt instead of STOP. When a portfolio is down 20%, this is where you’ll halt your trading but you’ll KEEP following your trading strategy. So, you’ll simply demo trade your system and continue journaling your entries and exits… And only once the equity curve (your portfolio) goes back to all-time highs (on paper of course) then you can resume trading live… Do you have a trading question? Ask in the comments and I'll fully answer it in one of these posts on TradingView... Trade well, live free Timon MATI Trader
JSE:J200Education
by Timonrosso
27 Ways to Save money to TradeSaving money to trade, or in general, can be a pain. Either it drops your quality of life, or you find that you just can’t save a cent at the end of the month. No matter what you’re earning, I’m going to show you exactly how to save money the easy way. Here are my 27 favourite money savings tips with a couple of personal notes… SAVINGS TIP #1: Stick to your shopping list Write your shopping list down on a piece of paper or on your phone, and stick to it to avoid overspending. When you are prepared for what you have to buy when it comes to your grocery shopping, this will more likely stop you from buying extra items you don’t need. SAVINGS TIP #2: Pay with hard cash Pay using real money instead of swiping your debit or credit cards. When you pay with a card, instead of cash, you’ll find that you’ll spend more money on unnecessary items than you should or with money you don’t even have. Personal note: While I’ve been living and trading in Greece, I find this is the best savings tip I’ve used so far. SAVINGS TIP #3: Pay yourself firstay yourself first As soon as you’re paid your salary, wage or income for the month – deposit a portion of that money straight into your trading or savings account. I like to use the 10% rule, but this all depends on what you can afford to deposit. This means, if you earn R60,000 per month deposit R6,000 into your trading account or savings account each month. SAVINGS TIP #4: Don’t shop when ‘hangry’ or emotional Avoid shopping when you’re feeling hungry, thirsty, angry or upset. You’ll find you’ll spend more money than you should. In a recent study: Hungry mall shoppers who were hungry spent on average 64% MORE than non-hungry shoppers. Make sure you have a nice meal and drink lots of water, before you go on your next shopping trip. SAVINGS TIP #5: The ‘cookie-jar’ approach When you empty your pockets, at the end of the day, drop them into a yearly cookie jar for your savings. You’ll be surprised how many thousands of rands you’ll be able to save, collect and be able to deposit into your trading account for the next year. SAVINGS TIP #6: Use the 24-Hour-Rule Before paying money for non-essential and expensive items on clothes, cosmetics, appliances or even tools, just wait 24 hours before buying it. You may find that you’ll lose that desire to buy them after 24 hours, which will save you tens of thousands of rands a year. Maybe when your parents said “sleep on it”, there was method behind their madness. SAVINGS TIP #7: Go generic Save a ton of money by buying the generic prescription medicines instead of paying a fortune for the name branded drugs. Ask your local pharmacist or physician if you can have the generic prescription drugs instead of the brand-name drugs. You’ll find that the generic products cost far less than the brand names, and will work equally well. SAVINGS TIP #8: A quick breakfast that lasts a week Breakfasts are not only the most important meal of the day, but can also be the quickest, easiest and most inexpensive meal for the day. When you eat a full and healthy breakfast, you’ll find it will keep you from going out to eat an expensive lunch… Personal note: For the last two years, I have had the same breakfast which I make once and it lasts an entire week. This has truly been life-changing as it makes my day start with one less decision to make before I get on with the rest of the day. It’s called “Overnight Oats”. If you’d like to see my personal recipe feel free to click here… SAVINGS TIP #9: Follow the 30-Day-Rule Before you buy something really expensive, give it 30 days and then decide if it’s worth it. I’m talking about items like jewellery, motorbikes, paintings, juice extractors and any other item that can cost over R3,000. SAVINGS TIP #10: Don’t be fooled by sales Avoid sales and don’t be duped by discounts, special offers, buy 1 get one free etc… Remember this for every time you see a sale for 50% at the next Black Friday’s Special. “You’re not saving 50% of your money, you’re spending 50% of your money that you weren’t planning to spend in the first place.” SAVINGS TIP #11: Skip the alcohol and bottled water! When you go out to a restaurant, avoid spending unnecessary money on alcohol and expensive water bottles. A standard restaurant can mark up their cost of alcohol by three to five times. Instead order just plain water or even a sugar free soda. Personal note: In Europe I have noticed that when you ask for tap water, they pour it from a bottle of expensive water (R30) anyway. This is due to the danger of drinking tap water in Europe. SAVINGS TIP #12: Own your doggy bag Ask your waiter to put the food that you didn’t finish in a doggy bag, so you can save money on lunch for the next day. People are far too embarrassed about everything nowadays which I think needs to stop. There should not be a stigma attached to taking leftover food home. Everybody easts, drinks and sleeps. And when it comes to the food you ordered at the restaurant, you paid for it so why waste it? This will also save you money, time and effort the next day for lunch, which will make your trip to the restaurant EVEN MORE WORTH IT. SAVINGS TIP #13: Put three items back after shopping When you’ve added extra items to your shopping that weren’t on the list, to avoid overspending, put back at least three items that you believe you can live without. It’s very easy to walk through the final naughty aisle grabbing a whole bunch of crisps, chocolates, biltong, dried fruit and even a bottle of juice. SAVINGS TIP #15: Cut down on smoking and drinking Try to cut down your smoking and drinking by half the number per day. This is really tricky to do but if you put your mind to it and challenge yourself, I know you can achieve this. Personal note: What I do with smoking is I’ve limited it to two in the morning, two in the afternoon and two at night. This tip has saved me hundreds of rands per week from buying more boxes and I will continue to try cut it down until I’ve quit completely. SAVINGS TIP #16: Fill up your milk with water As soon as the milk reaches, the half way mark – fill it up with water. YOU WON’T TASTE THE DIFFERENCE. As a parent or as a milk drinker, it can be extremely expensive to buy milk on a daily basis. SAVINGS TIP #17: Become a vegetarian (at least once a week) At least once a week, switch to meatless dishes which will help drop your grocery bill. Replace it with: Chickpeas, couscous, okra, rice, sauerkraut, quinoa, beans, nuts, pasta dishes etc… You’ll be surprised what you can find at your local supermarket. Personal note: Inspired by my cousin, she insisted I cut meat out just once a week. I call this day “Meatless Monday”. EXTRA MONEY SAVINGS TIPS #18: Grow your own vegetables #19: Sign up for loyalty cards #20: Track your spending on your finance budget app #21: Make meals that will last a week e.g. Lasagna, casserole, giouvetsi, gemista, soups, roasts, ratatouille etc… #22: Buy the generic foods rather than the expensive name branded foods #23: Pay careful attention to expiration dates #24: Check your eggs in their boxes and your vegetables in their packets #25: Freeze your foods in bulk #26: Eat a meal before going to a restaurant #27: Keep to Pay-As-You-Go with your cell phone account and use the Wi-Fi to call on WhatsAapp This will be fun! With these savings tips you can watch your money grow in your savings and trading account!
JSE:J200Education
by Timonrosso
QA WHAT is a Margin Call? QA: What is a Margin Call? You don't want this. It's an automatic instruction to close out your trade/s when you have insufficient funds in your portfolio. This is a safety mechanism for both you and your broker. It's also where either your trading platform, your broker or an automatic message via email will tell you to either deposit more funds into your account, close your trades or will warn you that your positions will be automatically closed. *DO YOU HAVE ANY TRADING QUESTION? Comment below or LIKE this post if you found it helpful. I've been trading for the last 20 years and it's my hobby to help provide analyses and help traders get on the right foot. I'm happy to have a platform like TradingView to do it :) Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
5 Market entry Orders Easily ExplainedBack in the old days, to action a trade you only had two easy options. Buy or sell… Fast-forward into the present day, and today you get slapped with five different options to choose from when you get into a trade. Right now, I’m going to simplify these five trading entry orders in way that you’ll never forget. Entry Order #1: Market Order The first entry order is the easiest to understand. This is where you’ll buy or sell at the most current market price. When you choose a market order, it is the quickest, most effective and easiest way to enter into your ‘long’ or ‘short’ trade at the current bid (buy) or offer (sell). Entry Order #2: BUY Limit When you place a ‘Buy Limit Order’, you’ll place your long trade entry price BELOW where the current price is trading at. Once the market price drops on or below the Buy Limit Order price, you will be automatically entered into your ‘long’ trade. EXAMPLE: BUY Limit If BHP Billiton’s share price is currently trading at R305 per share and you would like to buy (go long) at R300 per share, you’ll choose the Buy Limit Order. You’ll then wait for the market price to drop to your chosen order price or below it where you’ll then be automatically entered into your ‘long’ trade. Entry Order #3: SELL Limit When you place a ‘Sell Limit Order’, you’ll place your short trade entry price ABOVE where the current price is trading at. Once the market price hits this entry point or above it, you will be automatically entered into your ‘short’ trade. EXAMPLE: SELL Limit If BHP Billiton’s share price is currently trading at R300 per share and you would like to sell (go short) at R305 per share, you’ll choose the Sell Limit Order. You’ll then wait for the market price to rise to or above your chosen order price, where you’ll then be automatically entered into your ‘short’ trade. Entry Order #4: BUY Stop When you place a ‘Buy Stop Order’, you’ll place your long trade entry price ABOVE where the current price is trading at. Once the market price hits this entry point or above it, you will be automatically entered into your ‘long’ trade. EXAMPLE: BUY Stop If BHP Billiton’s share price is currently trading at R300 per share and you would like to buy (go long) at R305 per share, you’ll choose the Buy Stop Order. You’ll then wait for the market price to rise to or above your chosen order price, where you’ll then be automatically entered into your ‘long’ trade. Entry Order #5: SELL Stop When you place a ‘Sell Stop Order’, you’ll place your short trade entry price BELOW where the current price is trading at. Once the market price drops on or below the Sell Stop Order price, you will be automatically entered into your ‘short’ trade. EXAMPLE: SELL Stop If BHP Billiton’s share price is currently trading at R305 per share and you would like to sell (go short) at R300 per share, you’ll choose the Sell Stop Order. You’ll then wait for the market price to drop to your chosen order price or below it where you’ll then be automatically entered into your ‘short’ trade. I hope this helps with knowing how to place an entry order for next time! Trade well, live free... Timon MATI Trader
JSE:J200Education
by Timonrosso
Why you should never HOLD a boring trade - Rule I followGet in and get out in the shortest time possible. This is the science of successful trading. But what happens when a trade turns out to be more like a non-performing investment? When you hold a long-term trade, there are a few issues that will follow including the: Opportunity cost You can find other higher probability trades, instead of having your money tied up aimlessly in a sluggish market. Unnecessary impatience You’ll eventually feel rather anxious and frustrated holding onto a long-term trade, when you are better off trading in a market that is moving. The fake-out With an ongoing trade, the breakout pattern may fizzle out into a low probability fake-out trade (a trade that turns against you). I created a rule to avoid this situation from ever occurring again. I call it a time stop loss... After 7 weeks of holding a trade, exit the trade and look for a better opportunity. Worst case you take a smaller loss than you thought. Best case you take a smaller profit than you expected. But you'll stop holding trades that aren't performing and stop paying daily costs with trading.... Sound good? Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
2
My Interview with US Successful Trader Peter L. BrandtThe Internet has truly made the world a smaller and a more accessible place. In 2013, I stumbled across world-renown trader, author and owner Peter L. Brandt, on Twitter and his blog. I sent him a request for him to join one of the most elite South African trader groups on Skype. We had some fantastic chats over the next couple of days. There are words of wisdom that are far too essential to let them slip by. I’ve collated some of the timeless lessons Peter L. Brandt shared with me. I hope you enjoy the interview and find it useful for your trading career. Timon: I’ve never met a trader who trades long time-frames on Forex and commodities, do you believe technical charts can be used to predict market movements? Peter: I absolutely positively do NOT believe I can predict the markets. I absolutely positively do NOT believe charts are predictive tools any more than a MACD, COT, Moving Averages or anything else. My win rate is historically around 38%, although I made some changes to the system in an attempt to boost that to 45%. Generally, 100% of my profits come from 10% of my trades. It is a matter of trying to keep the other 90% from being a net loss. Timon: I agree with no one being able to predict the market movements, however, I believe in probability predictions. If there is a breakout to the upside, there is a higher probability for the market to continue moving in the direction of the breakout. What is your take on when unfavourable markets bring about a 15% or more drawdown on your portfolio? Peter: Drawdowns come with the territory. The question to always ask for discretionary traders is, whether their trading rules are out of sync with the markets? If they are out of sync with their rules? or both? If I know the problem are my rules being out of sync with the markets, I will never stop trading because I cannot time my rules. I may cut back on the size during a losing period. Timon: As my trading mentor and dear friend Igor Marinkovic says, “Your biggest drawdown is still to come and so is your biggest winning streak.” What are your thoughts on risk management principles? Peter: As a general rule — very general rule — an excellent trader with a great grasp of money management should have an average annual ROR that is 1.5 to 2 times their worst drawdown, over the past three or five years. For me, this is mandatory Even daily patterns are made up of many hourly patterns that morphed, which are made up of many 15-minute patterns that morphed etc... — I call it ‘Chart Morphology’. The trick is to determine which patterns are real and which patterns are more likely to morph. Sometimes a market reveals itself by failing. It is because of morphology that I seek patterns that are 10 to 12 weeks or longer. I’m also not worried about markets changing so drastically that all conventional systems stop working. The reason is my belief that markets are and have always been driven by fear, greed and money flows. These things will always be the same. Timon: Yes, that’s why I don’t believe in Holy Grail systems. I believe in finding the system that suits your personality and risk profile. Along the way, one should not feel scared about making mistakes, but be sure to avoid them from being too costly. What would be your final feedback on trading in general? Peter: Sounds like you are well on your way to a long and profitable career trading. Mistakes are the tuition charged by the markets for learning. Unfortunately, the markets often decide the tuition rate, not us. Hence, I only risk 0.5% per trade. You have to develop your own style. I have never met another truly skilled trader who has copied his or her style from another trader. This is true from a tactical standpoint, but from a money management standpoint most skilled traders think very much alike.
JSE:J200Education
by Timonrosso
2
The Harshest But Most Necessary Trading Lesson (Black Swans)Well there you have it. The BTC Market Slides and slides on Poor market sentiment after the FTX crash. Many Traders will have seen the current price we are falling to (circa 14K) and thought ah, we won't get there.. Well we are almost there. Which is why you must know what a Black Swan is and how they can and will happen. If you are fully prepared for such scenarios you will manage your risk a lot better. If you know there is a chance any Asset you are Trading can fall and fall, or rise and rise, to extreme levels, you will become naturally averse to 'over leveraging' yourself. Traders all the time suffer from this but you must always remember that price targets that are extreme often are an inevitability. In other words, Monthly targets get hit over time. This is because the Market shifts up and down based on buyers and sellers interests. At the moment, the market sentiment has got so poor that BTC and many other cryptos have fallen. People pull out and the price falls.... And eventually lots of people do this and you get extreme targets hit. So, always bear in mind that you can and WILL fall to extremes. It saves a lot of heartbreak! Trade HVA's Small. Trade them safe.
COINBASE:BTCUSDLong
by WillSebastian
2
Forget about motivation and implement this insteadThere is an over-estimated word that people say. I’m talking about MOTIVATION. “I need motivation to keep to a healthy diet.” “I need motivation to go to gym six days a week.” “I need motivation to see my friends.” If I needed motivation to trade, I would have stopped trading over a decade ago. From today, I want you to remove the word motivation from your life and replace it with… INTEGRATION Integration is when an action becomes a habit without any effort and without any force. You make it a part of your daily life where you don’t need the motivation to do something. To integrate something is to naturally enforce great discipline, passion and determination into your life. I bet you already integrate certain aspects into your life such as, Getting dressed Brushing your teeth Cooking food Just like you’ve integrated a few of the above aspects into your life, so too have I done with trading. For well over a decade, I have the same morning trading routine I’ve incorporated into my life. I make coffee Open my trading and chart platform Look at the main index Analyse charts using my MATI System Place my trade orders Let the market do its thing That’s it. It’s what I do. I don’t need the motivation or discipline from friends, family and colleagues when I follow my morning routine. I’ve just integrated trading into my routine. It’s time you stop the motivation and start integrating certain aspects into your life with everything that you are passionate about. Trade well. Timon (MATI Trader)
JSE:J200Education
by Timonrosso
5 Laws of Trading Success - EXPLAINED E=MC² Everything you need to know about the Universe, can be condensed into this tiny equation. What if there was a formula that unlocked the laws of trading the markets? I believe, there is… I call them the 5 Laws To Trading Success… 1. Markets You’ll need to be able to find and trade the best markets, at anytime and anywhere in the world with CFDs or through Spread Trading. 2. Method You’ll need to create and adopt proven, mechanical and consistently profitable trading strategies with a few entry and exit rules. 3. Money You’ll need to learn how to use essential money management rules in order to boost your winners, cut your losses and never blow your trading account. 4. Mind You’ll need to be able to improve your self-confidence and develop a successful trading mindset, in order to trade effortlessly with little worry and with less stress. 5. Miscellaneous You’ll need to adopt extra tips and tricks in order to boost your win rate, cut your trading holding time and preserve your portfolio. Once you incorporate all five equally important elements – around your personality, lifestyle and risk appetite – you’ll be able to create a timeless and profitable trading plan for the rest of your trading career. Trade well live free. MATI Trader
JSE:J200Education
by Timonrosso
1
USOIL and Trading Lesson of the Year...Cast your minds back.. Oil Falls to MINUS Value. People are just giving barrels away instead of paying to store it. The value absolutely Wiped out because of fear and mass selling. Many Traders at this point got extremely scared and thought it was NOT time to buy into oil (In many ways) and all was over. The fact is, despite the price being extremely low and cheap and the world relying on Oil Traders Said No. I don't want it. Its too cheap and I'm not interested in buying it.. Then we saw it RALLY and boy did it go high fast. Demand soared and the price of Oil raised dramatically. Now here is where it gets interesting (And where you can actually learn an extremely important lesson for next time). In fact, this actually happened on my Trading Posts. When you Talk about getting short on an asset that is reaching extreme price highs and is rallying Traders who do not know what they are doing say you are mad. They reflect on the fact that they are worried about what a price rise means and how to deal with it. Sometimes, it's better to just have a plan for things like this. At the moment you are seeing in across various different asset classes and its a similar story. They will fall .They will Rise. Your job is to judge risk before ANY move and scale into the market. Was Oil going to rally forever? No. Were Traders going to step in and short the hell out of the highs? Yes. This happens time and time again. Simply believing that prices will never come down is incredibly risky in itself. Yes, Markets may seem to present risk but it does NOT mean you can't trade them so long as you are doing so within your means of capital. Oil rose fast and violently, but if you had shorted sensibly you would be out for gains on every position and you could have incorporated REAL Risk Management Strategies to cope with it (Hedging/adding/Taking away) Methods. So the lesson is, when something is crazy cheap, buy it. When something is crazy high, sell it. This is the natural way of any market and why you should be buying low and selling high. It is now up to you to make the Right decision next time!
TVC:USOIL
by WillSebastian
2
Debugging the Stop Loss Myth..Often what comes across my Desk is Traders Applying Stop losses into their trades. Well, I'm here to tell you that I never use stop losses. Scary, huh? NO. I see Monthly Gains with the use of no stop and a change in strategy.. You see usually when Traders are using Stop Losses they look for Risk and Reward. But what affects risk and reward? Is Risk and Reward the same for every Trading Scenario?.. The answer is no. When you put your stop loss in and you set your Take profit, you are deciding where you would like to exit on both sides, not the market. There is no factual way of deciding the REAL probability of you hitting your TP before your SL. I appreciate it may be UNPOPULAR but I just do not trade with a stop loss (unless in EXTREME circumstances). I drop my risk substantially and I diversify. I incorporate Fast hedging and Risk management Strategies to suit any Drawdown. After all, what happened to YOU on this Euro Fall? How many stop losses did you get taken out on? Did you get any gains on the other side? Did you trade the other side? In short, Stop losses simply are not the be all and end all.. For some Traders There's nothing wrong with using them, but for most Traders It's just an EASY way for people to feel comfortable. Why not rather scale in and out of markets over time with LOW or mitigated fully risk. You can eliminate your position WITHOUT an SL! Take a risk (or perhaps Take LESS risk) by not using stops.. Just an idea! Be Open to What is achievable and possible.
by WillSebastian
LETS GET STARTED: MONDAY TRADINGFor More Daily Detailed Analysis, videos and Trading lessons please feel free to click on the follow button. As we head into Monday we have a different market bias to the start of last week. With Diplomatic talks ongoing, the market is somewhat halted across the board relying on a better outcome. From a technical basis, lots of assets have seen sharp rises on this better sentiment. It is for this reason we can start to look to the short side and begin to get short lightly (DXY). This is going to reflect on any pair necessary, so Trade accordingly. Remember to keep your risk management in check, as Market risk remains on the table. Trade Safely and accurately!
TVC:DXYShort
by WillSebastian
How to Draw Legitimate TrendlinesHey Guys! Just wanted to post a quick lesson on "How to Draw Legitimate Trendlines". In this lesson, I explain the 3 rules that must be applied for a trendline to be legitimate. 1.) Trendline's attachment points must be on the wicks of a candle. Not the body of a candles. 2.) There must be at least 3 contact points on a trendline for it to become legitimate. 3.) There must be no break outs or surpasses of the trendline. Moreover, I demonstrate these with examples. That's it! I hope this helped! Have a great day! Ken
Education
by TradingForexPriceAction
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SHIBUSD with a trading lessonFor more expert analysis and trading lessons on a daily basis, make sure you follow me! Here we have our updated SHIBUSD Chart. After the long target set in our last chart, we can take this time to go over a lesson in trading. Assets like SHIB and many other coins are highly volatile as they are new. This hype causes large fluctuations in price. If you are going to buy any coin, do not do so AFTER they have risen so high in price. You pay too much and therefore get a bad deal. We want to buy when price dips down.. its a much better deal.
Long
by WillSebastian
10
GBPUSD Plan as Strong support zoneFor more detailed daily analysis, go ahead and click the follow button. Here we have our GBPUSD chart. After hitting our previous targets, we are now looking to take the GBPUSD long again. If you are wondering why, there is several reasons which are key factors and which you should use in future trading strategy. We are at a point of previous price rejection. This means there is buying power at this area. We are also at a low price from the previous drop and far off our MA's. We are looking long with our first exit noted by the directional arrow upwards.
Long
by WillSebastian
An Important lesson of pure technical analysis.Here we have got another EUR pair. As you can see, the EURAUD pair has recently taken a move back up. We are going to discuss and examine in detail why we would be going short now and why we would be taking it long again, for a longer term trade. These key points really are fundamental for any chart, you must first understand risk management and then proceed to employ these extra methods into your trading. These points involve: 1. Dollar cost averaging of positions. 2. Buying dips and selling when price rises. 3. Trading with the trend. As you see on our chart, we had a move back down to key support as highlighted, at which point we went long. We have now had a short move up to our previously noted target (See other charts posted). We have reached a key level and we can now begin to sell, following our rules as normal: It is important to understand that if you spread your risk out over multiple positions, rather than just one, you stand a much better chance of having a successful trade. Similarly, if you are trading a trend and you are buying dips (when price drops in an uptrend) and selling price rises (when price comes up in a downtrend) you are again in a better standing, because you are following the trend and you are getting a better price at that time. Trends tend to run like waves and they keep going. When you mix these core aspects with indicators like our MA's and stochastic oscillators, you get a great gauge for where price is and where you want to be. So in short, rather than buying all at once, split up your positions and buy on dips/sell on rises. Use your indicators to give you an idea of where you are on a current trend and how high or low price is. The lower the price, the further you spread out your longs. The higher the price, the further you spread out your sell positons and vice versa.
Long
by WillSebastian
2